Minimum wage 2026: This is what the Government has said about the upcoming increase

President Gustavo Petro has already raised an issue of high national interest and utmost importance to the country's economy: raising the minimum wage.

The head of state spoke about the possibility of implementing " a good decree raising the minimum wage " by 2026; something that happened with the adjustment for the current year.

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In response, Labor Minister Antonio Sanguino stated that negotiations for the 2026 minimum wage will be conducted by the Permanent Commission for the Coordination of Wage and Labor Policies , with the participation of employers, unions, and the government. Only if there is no agreement will the President be able to set the increase by decree, as permitted by the Constitution.

The meeting has already been reactivated " with figures in hand and the presence of experts ," the official said, in line with his recent statements to the media.

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Regarding a possible presidential decree setting the minimum wage increase for next year, the head of the Labor portfolio denied that the government is seeking to bypass the agreement : " If there is no agreement, the President has the legal power to decree the increase. However, this government has promoted salary increases above inflation, which has improved purchasing power, reduced unemployment (8.8% according to Dane, the lowest since before the pandemic) and kept inflation under control, around 5% ."

And he added that the head of state: " (...) has indicated that, if it is his turn to use his legal authority, he will do so. That is why we convened the Labor Coordination Commission, with the President's consent, to begin the discussion with figures and experts that define the economic scenario and the increase that will allow for improving workers' incomes ."

How will informality be addressed during the remainder of the government?

Regarding informality, he stated that the majority of jobs created are formal and that the labor reform will allow for the formalization of more than 1.5 million workers in sectors such as delivery platforms, domestic work, and apprentices from the National Apprenticeship Service (Sena) .

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He also said that a " substantial " increase would not increase informality, citing the decline in that indicator in August. He also linked growth and corporate profits with the ability to absorb a rise in the minimum wage.

He added that " 80% of the jobs created are formal, and the economy is growing by nearly 3%. Business owners, who have made millions in profits, should understand that by improving workers' incomes, the economy and employment also grow ."

What comes in the discussion is the minimum

The Consultation Commission will meet over the next few months with technical support from DANE (National Administration of Statistics), the Bank of the Republic, and the Ministry of Finance and Public Credit . The final decision is usually announced in December, following the traditional "pull of arms" between labor unions and trade unions. If there is no agreement, the Government is empowered to issue the decree establishing the minimum wage increase for 2026, as was the case with the adjustment for the current year.

PORTFOLIO